FX.co ★ Technical Analysis of ETH/USD for October 27, 2021

Crypto Industry News:

After months of waiting, the Bank of Spain issued instructions for registering with the central bank to offer cryptocurrency services in the country.

Institutions are instructed to submit the application via the electronic register after which the central bank will process the application within three months.

The trial was first announced by the Spanish central bank in June, with the promise that instructions on how to proceed would be issued in good time. These instructions have already arrived.

Much of the uncertainty was about whether existing mainstream financial institutions such as banks would need to register as they are already regulated entities.

"The registration obligation applies to all natural or legal persons who are in any of the above cases and provide virtual currency exchange and e-wallet storage services, whether they appear in other administrative registers at the Bank of Spain or in other competent authorities" - said in a statement.

Technical Market Outlook

The ETH/USD pair had broken below the short-term trend line support around the level of $4,100 and is trading below $4,000 already. The local low was made at the level of $3,938 and the corrective cycle might extend towards the next technical support seen at $3,830 soon. The momentum is weak and negative already, so the bears are in control of the market and continue the corrective cycle.

Weekly Pivot Points:

WR3 - $5,099

WR2 - $4,706

WR1 - $4,412

Weekly Pivot - $4,017

WS1 - $3,701

WS2 - $3,313

WS3 - $2,969

Trading Outlook:

The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.